Food Supply Chain Market to Grow by USD 59.51 Billion from 2024-2028, Driven by Blockchain Integration, Report on How AI is Redefining Market Landscape - Technavio

NEW YORK, Feb. 14, 2025 /PRNewswire/ -- Report with market evolution powered by AI - The global food supply chain market size is estimated to grow by USD 59.51 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  7.86%  during the forecast period. Integration of blockchain in food supply chain is driving market growth, with a trend towards increasing mergers and acquisitions among market vendors. However, data security and cyber threats associated with food supply chain management  poses a challenge. Key market players include Archer Daniels Midland Co., AWL India Pvt. Ltd., Best Food Logistics, Burris Logistics Co., C H Robinson Worldwide Inc., Cargill Inc., DACHSER SE, DB Schenker, Eight Point Distributors, Gordon Food Service Inc., International Business Machines Corp., Lineage Inc, Nishimoto Co. Ltd., Olam Group Ltd., Oracle Corp., Radhakrishna Foodland Pvt Ltd., SAP SE, Schneider National Inc., SITRA, Sysco Corp., VersaCold Logistics Services, WayCool, and YUSEN LOGISTICS CO. LTD..

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Market Driver

The food supply chain market is experiencing significant trends in fresh and perishable foods, driven by growing consumer preferences for healthier options. Temperature-controlled logistics, including refrigerated transport technologies and cold chain management, are crucial for ensuring food safety and quality. E-commerce platforms are transforming food trade by enabling consumers to buy a wide range of products, from meats and dairy to fruits and vegetables, online. Safety regulations are a top priority, with AI, IoT, and blockchain technologies used for traceability and inventory management. Sustainability is also a key concern, with customized logistics solutions and cold chain capabilities essential for reducing food waste and loss. Economic growth and environmental concerns are shaping the food supply chain landscape, with a focus on supply chain integration and logistics infrastructure. Meats, dairy, and processed foods are major sectors, with agriculture and food retailers playing crucial roles. Nutrition, health, and safety regulations are driving innovation, from precision farming and data management to product traceability and consumer trust. Funding for agri-tech startups and multi-modal transportation are also shaping the future of the food supply chain. 

The food supply chain market is experiencing growth due to mergers and acquisitions among vendors. By combining resources and strengths, companies create more efficient and resilient supply networks. These alliances lead to improvements in logistics, traceability, and technology adoption, such as blockchain and IoT sensors. For instance, Dachser SE's acquisition of Frigoscandia AB expands its food logistics network to the Nordic countries. Such partnerships reduce costs, minimize waste, and ensure food safety and quality throughout the supply chain. 

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Market Challenges

• The food supply chain market faces various challenges in providing fresh and perishable foods to consumers. Temperature-controlled logistics is crucial for meats, dairy, fruits, and vegetables. E-commerce platforms are transforming food trade, requiring cold chain capabilities and customized logistics solutions. Safety regulations, consumer preferences, and sustainability are key concerns. Artificial intelligence and Internet of Things are revolutionizing inventory management and traceability. Blockchain technologies ensure transparency and consumer trust, from agriculture to food retailers. Economic growth and environmental concerns call for logistics infrastructure upgrades. Transportation, cold chain management, and warehousing are essential components. Meats, dairy, fruits, vegetables, and processed foods all require specific handling. Sustainability, precision farming, and data management are crucial for reducing food waste and loss. Food safety, health, and nutrition are paramount. Refrigerated transport technologies, cold chain capabilities, and logistics integration are essential. Standards, funding, and trade liberalization are shaping the future of the food supply chain. Multi-modal transportation, traceability, and positioning systems are enhancing efficiency. Agri-tech startups are innovating in areas like radio frequency identification, warehouse management systems, and food processing technologies. Consumer trust, provenance, and contamination sources are critical issues. Food retailers and payment transactions require efficient and secure systems. In conclusion, the food supply chain market is dynamic and complex, requiring continuous innovation and adaptation to meet consumer demands, regulatory requirements, and economic realities.
• Food supply chains are becoming more digitized and interconnected, bringing numerous benefits such as improved efficiency and real-time tracking. However, this increased connectivity also exposes sensitive information to cybersecurity risks. Customer data, logistics details, and financial transactions are prime targets for cybercriminals. A successful breach can lead to supply chain disruptions, compromised food safety, financial losses, and reputational damage. The interconnected nature of modern food supply chains means that a security weakness in one area can potentially compromise the entire system. Furthermore, the integration of Internet of Things (IoT) devices and sensors throughout the supply chain enhances tracking and monitoring capabilities but also increases the number of potential entry points for cyber-attacks. It is crucial for food supply chain businesses to prioritize cybersecurity to protect their operations, finances, and reputation.

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Segment Overview 

This food supply chain market report extensively covers market segmentation by  

• Product Type
• Packaged Food
• Fresh Food
• End-user
• Households
• Commercial
• Industrial
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

1.1 Packaged food-  The packaged food market, which includes processed foods, snacks, beverages, and ready-to-eat meals, is currently undergoing substantial growth. This expansion is due to shifting consumer lifestyles, urbanization, and the demand for convenient, long-lasting food solutions. The packaged food supply chain is intricate, involving the sourcing of raw materials, manufacturing, packaging, distribution, and retail placement. Food safety and quality control are essential, necessitating advanced tracking and tracing systems. Vendors are investing in automation and smart packaging technologies to prolong shelf life and preserve product quality. Sustainability is a priority, with efforts to minimize packaging waste and optimize transportation routes. The COVID-19 pandemic has intensified the need for packaged foods, leading to adaptations in the supply chain to ensure resilience against disruptions. As consumer preferences evolve towards healthier and more diverse options, the packaged food supply chain continues to innovate while maintaining efficiency and cost-effectiveness. This increasing demand for packaged foods is expected to drive the growth of the global market in the forecast period.

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Research Analysis

The food supply chain market encompasses the production, transportation, warehousing, and distribution of fresh and perishable foods, including meats, dairy, fruits, and vegetables. Temperature-controlled logistics plays a crucial role in ensuring the quality and safety of these products, with the use of cold chain management and advanced technologies like artificial intelligence and the Internet of Things. E-commerce platforms are transforming food trade by enabling consumers to buy fresh produce online, while safety regulations and positioning systems with Radio Frequency Identification (RFID) and Warehouse Management Systems (WMS) ensure traceability and compliance. Agriculture is a significant part of the food supply chain, with a focus on sustainable farming practices and reducing food waste. The transportation sector plays a vital role in timely delivery, while blockchain technologies offer transparency and security in the food supply chain. Consumer preferences for healthier and safer food options continue to drive innovation in the industry.

Market Research Overview

The Food Supply Chain market encompasses the production, transportation, warehousing, and retail of fresh and perishable foods, including meats, dairy, fruits, vegetables, and processed foods. Temperature-controlled logistics plays a crucial role in ensuring the safety and quality of these items. E-commerce platforms are revolutionizing food trade by enabling consumers to purchase fresh produce online. Safety regulations, consumer preferences, and sustainability are key considerations in this industry. Advancements in technology, such as artificial intelligence, the Internet of Things, and blockchain technologies, are transforming food supply chain operations. Cold chain management, transportation, and warehousing are essential components of the food supply chain, requiring advanced refrigerated transport technologies and inventory management systems. Agriculture, food processing, and retail are interconnected in the food supply chain. Economic growth, environmental concerns, and nutrition are significant factors influencing food supply chain trends. Sustainability, customized logistics solutions, and supply chain integration are becoming increasingly important. Food waste and loss are major challenges in the food supply chain, with traceability and health and safety regulations playing a crucial role in reducing these issues. Precision farming, data management, and product traceability are essential for ensuring food safety and consumer trust. Agri-tech startups are driving innovation in the food supply chain through the development of new technologies and business models.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Product Type
• Packaged Food
• Fresh Food
• End-user
• Households
• Commercial
• Industrial
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

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SOURCE Technavio